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Yen firms in Asia as investors pare risk The yen rose against other major currencies in Asian trade Tuesday as investors shed risky bets on credit market concerns despite a US government bailout of two mortgage lenders, dealers said. The dollar slipped to 107.59 yen in Tokyo morning trade from 108.27 in New York late Monday. The euro slipped to 1.4096 dollars from 1.4129 and to 151.66 yen from 152.96 on persistent worries over the European economy. The Australian and New Zealand dollars fell against the yen as traders dumped so-called "carry trades" - risky deals in which players invest in the high-yielding currencies with funding from the low-costing yen. Equities markets worldwide surged Monday on Washington's unprecedented US takeover of mortgage finance giants Fannie Mae and Freddie Mac on hopes of an easing of a US housing crisis and resulting credit crunch. Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ But by Tuesday markets had regained their cool, with Japanese equities and government bonds both under pressure. Forex market players were uncertain if the US plan would stave off further credit-related losses, Chuo Mitsui Trust Bank chief strategist Yosuke Hosokawa said. "There are many areas in the government's plan that remain unclear, and fresh concerns have cropped up over the US economy including its finances," Hosokawa said. "Markets are questioning: is the US really alright?" Market participants were looking ahead to July home sales data in the US to be released later in the day. If the figures fall below market expectations, they could worsen the outlook for a recovery, dealers said. Under the bailout plan, Fannie Mae and Freddie Mac will get government-appointed chief executives and shed their mission of shareholder profit. The Treasury agreed to inject 100 billion dollars if needed into each. The massive government intervention aims to contain the damage from the worst housing slump in decades, which has rippled through the banking system and led to multibillion-dollar losses for Fannie and Freddie. But some traders said the plan could also become costly for the US taxpayer without repairing the fundamental problems of the housing market. Visit our site at – http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/1 News Resources - http://investorline.co.in/blogger/?q=aggregator/sources Newscatcher- http://catcher.investorline.co.in/ Newsgroups- http://groups.google.com/group/india-investor --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
